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Rapid digital transformation underway represents both a risk and an opportunity for both policymakers and firms. This can address the risk and seize the opportunity by leveraging FDI to grow digital capabilities and competitiveness through a three-part strategy. First, launching Digital FDI enabling projects (DEPs) to create “digital friendly” investment climates through enabling policies, regulations, and measures. Second, using a “SMART” test as a heuristic before a full-fledged DEP is launched, which benchmarks their economy’s digital Skills, Market functioning, Access through connectivity, Restrictions, and Trust, and provides tools to tackle limiting factors. Third, reviewing FDI trends in six sectors that are important to grow the digital economy (two of which are proposed as essential, namely Communications and Software & IT services), with graphical evidence that can guide policymakers to prioritize policy reforms and investment promotion where they are relatively weak. Throughout, particular attention should be paid to growing the digital capacity of small and medium-sized enterprises (SMEs). A Sustainable Technology Board – modeled after the Financial Stability Board but oriented to cooperation over new technologies – could further help address techno-competition and other concerns over Digital FDI.

Digitalisation has become a central theme in the current economic and policy debate. Large digital and tech multinational enterprises (MNEs) are gaining an outsized role in the global economy. Also, the adoption of advanced digital technologies across all industries is fundamentally changing production processes. Both these (interrelated) phenomena have profound implications for economic structures, employment, inequality and development and industrialisation opportunities. This chapter analyses the international production and investment (i.e., foreign direct investment [FDI]) implications of the digital economy. First, it empirically documents significant differences in internationalisation patterns between the largest digital MNEs and traditional MNEs; particularly, the tendency of digital MNEs to exhibit an asset-light international footprint. Second, it argues that the powerful transformational forces related to digital adoption and the new industrial revolution have the potential to change international production more broadly, favouring a shift towards internationalisation models characterised by decentralised production, accelerated servicification and extended disintermediation. The chapter concludes with investment policy implications and a number of questions for future research.

The governance of capital market institutions did not receive much interest compared to their banking sector counterparts, partly due to their different ownership structures. Recent trends; increased competition, technological advances, structural changes, globalization, all had their share of impact on governance systems of capital markets institutions particularly on exchanges. Corporate governance of non-financial firms and capital markets institutions differ in several ways. Firstly the role of risk management differs since they may impose systemic risks to the financial system. Secondly well-implemented governance structures and processes are required but are not sufficient in capital markets since there are several conflicts of interests to be addressed. Therefore whether and how effectively they function is what matters. Thirdly the governance structures of such institutions exhibit different effectiveness on their decisions.The governance of FIs in capital markets is discussed in terms of board structure and management, risk governance, supervisors, shareholders, executive compensation, role of regulators, authorities and values and culture. The role of stock exchanges in corporate governance are discussed separately in terms of implementing corporate governance codes, demutualisation and its impact on regulations, transparency and accountability issues and the effects of M&As among exchanges. Market needs strong analytical tools and reliable benchmarks to assess governance risk. The corporate control and the regulation of the institutions by the exchanges when the corporations (regulated) are the competitors of the exchanges (regulators) or owned by the stockholders of the exchanges must be addressed. The risk of regulatory arbitrage, calls for the need of harmonisation among regulators. Better regulation of FIs and greater global coordination among regulators are seen as the most two important issues to prevent another crisis.

Purpose – Institutional investors need to move beyond first- and second-generation interpretations of Corporate Social Responsibility (CSR) and Socially Responsible Investment (SRI) (based on negative filters), and also beyond third and fourth generations (based on positive and integrated filters), which are more sophisticated but still limited, and toward a fifth generation of SRI and CSR. A fifth-generation model systematically incorporates critical intangibles, such as human capital analysis, into the Environmental, Social, and Governance (ESG) investment process.

Methodology – This chapter incorporates a literature review and draws on a range of qualitative research and case studies on the current and potential role of regulators to regulate nontraditional measures of value.

Findings – The power of institutional investors is currently based on incomplete information from listed companies on how they create value, yet it rests on superior knowledge and insight into the workings of the companies in which they invest, and is only as strong as the quality of the information it uses to make investment decisions on behalf of clients.

Research implications – More research on the role of human capital analysis, and its regulatory consequences, is required.

Practical implications – Regulators need to act within the context of these fifth-generation models in order to create the environment for more transparent investment recommendations.

Originality of chapter – This chapter contributes a qualitative and conceptual perspective to the debate on the role of regulation beyond the global financial crisis.

Crises are often studied in international business (IB) research as the external “context” for business strategies, but firms can also be active participants in the unfolding of crises. The study of crises in IB could benefit greatly from studying the role of multinational enterprises (MNEs) as active participants, rather than as mere passive actors, responding to exogenous events. History shows that IB crises typically unfold partially as exogenous processes, and partly as the result of MNE strategies. A multilevel and longitudinal approach to studying crises in IB is clearly necessary. This chapter considers the extent to which smaller events that preceded the present crisis – since 1989 – point to systemic problems in global governance. It also defines five overlapping lenses through which future IB studies can further create relevant insights on how to deal with crises: historic, macro, meso, micro and exogenous. The chapter finally serves as an introduction to the whole Progress in International Business Research volume by indicating the relevance of all parts and chapters that follow.

This paper aims to examine gender differences in credit access and credit default.

Using panel data drawn from 917 valid credit borrowers covering the period 2012 to 2015 drawn from among 6,849 study subjects and a national household financial survey (n = 29,500) conducted in China, this study focuses on gender differences in small and micro entrepreneurs’ financial behavior, specifically with respect to credit access and credit default.

The study revealed the following: Women expressed having more barriers to obtaining a business loan than men; gender had a significant effect on women’ credit default; and women were less likely to default a loan than male loan borrowers did. An exploration of the reasons for credit access and default found that female loan applicants were more likely to display a lack of knowledge and confidence in loan application.

The study contributes to literature by using the Marxian concept of reification in explaining women and their financial behaviors in China.

This paper aims to explore how gender differences in entrepreneurial intentions (EI) change when entrepreneurship education (EE) is added to the force field of macro-social stimulants and inhibitors of female EI in the particular context of the United Arab Emirates (UAE).

The study is based on a pre-post survey with entrepreneurship students and students with a similar profile enrolled in other courses (N = 246) at three universities. The three main hypotheses are evaluated through independent-samples t-tests and a hierarchical multiple regression analysis.

The findings indicate a negative effect of gender stereotypes on female students’ EI in the UAE, regardless of the course type. Furthermore, entrepreneurship courses appear to be more successful than other courses in raising the EI of students in general and female students in particular. Finally, adding EE to the equation of macro-social inhibitors and stimulants of female EI in the UAE seems to tip the balance in favor of the influence of economic affluence, rapid modernization and proactive governmental policies to stimulate the entrepreneurial spirit among female residents. That is, at the end of the entrepreneurship courses, there was no significant gender difference in EI anymore and female students are significantly more likely to experience a positive change in EI than male students.

The literature review identifies the need for future studies to evaluate the impact of variability in sampling and methods among previous studies on gender effects in EE. Building on the findings, future studies could identify which aspects of EE are pivotal for customizing female students’ specific local interests and needs. The study is limited in the sense that the data set did not enable tests of moderators at the course level (which mostly requires more qualitative data) and individual level. In addition, the sample is not representative for all female residents in the UAE at large.

This study might stimulate (UAE) policymakers to increase the scope and quality of EE. In turn, university administrators are recommended to find ways to compensate the self-selection effect (overcome likely opt-out by female students) when entrepreneurship courses are elective.

This exploration was inspired by the strong emphasis that Julie Weeks put on the gendered impact of macro-level factors in business enabling environments (Weeks, 2011). The empirical analysis builds on a conceptual framework that integrates Krueger’s model of EI, theory on gender stereotypes in entrepreneurship and previous literature on the role of EE (reinforcing or mitigating stereotypes). The study is executed in the relatively unexplored context of the UAE, which offers strong macro-social inhibitors for ánd stimulants of female entrepreneurship.

This study explored the mediating effect of political embeddedness on the relationship between gender and performance of private enterprises in the emerging economy of China. Political embeddedness is examined in terms of personal characteristics of owners and their firm.

Secondary data were collected from the Chinese Private Enterprises Survey for the years 2002, 2006, 2014 and 2016 using responses to identical questions. Tobit models were implemented to examine hypotheses related to the gender gap. A bootstrapping approach was applied to examine hypotheses related to mediation through political embeddedness.

The gender effect on enterprise performance was found to be partially mediated by political embeddedness at the personal level and even more strongly by political embeddedness at the firm level, which is beyond the well-known mediation effect of bank loans.

The Chinese sample, in which guanxi plays a significant role with respect to women-led firms, may limit the generalizability of the findings to other emerging economies.

Given the mediating effects on firm performance of political embeddedness at the personal and firm levels, women business owners in China should pursue political involvement, possibly with the support of policymakers and mentors.

The relationship between businesswomen and political embeddedness is underexplored. This study innovates by applying the gender lens to the notion of political embeddedness and extending the construct of personal political embeddedness to the firm level.